Mortgages

In this section, we have answered some of the most frequently asked questions. If you have a query that is not covered here, please contact us.

Why has my balance increased?

• Additional Borrowing - If you have increased the size of your loan during the statement period, your balance will increase. Interest is charged on any additional lending immediately after completion.
• Missed Payment(s) - Please check your statement to ensure that you have made all mortgage and insurance payments. If any payments are missing, check your bank statements if you pay by Direct Debit or Standing Order, or your payment receipts if you pay by any other method.
• Late Payment(s) - If your payment is sent to us late in a month, it may not be processed in time to be shown on your annual account statement in the correct month. All payments need to reach us by the end of each month to allow them to be credited to your account on time. Remember that Standing Order payments may take up to 5 days to be applied.
• Fees or Charges - Have any charges or fees been applied to your account that you have not paid during the statement period? To find out, please check the details in your account transaction summary section on your statement.

What kind of mortgage do I have?

The product summary section of the statement tells you what product(s) you hold and whether your account interest is calculated on a daily or an annual basis. Your repayment type is detailed underneath the product summary section.

What does it mean by daily or annual interest mortgages?

If your mortgage operates on a daily interest basis:
As interest is charged daily, when you make a payment, it reduces your mortgage balance and interest on the balance is reduced immediately. If you underpay and/or miss a payment, your mortgage balance will increase, and the interest will be calculated on the new balance at the end of the month.

If you borrow more or have fees added to the loan, interest will be charged on the increased balance immediately.

If your mortgage operates on an annual interest basis
Interest is charged to your account at the beginning of the year, based on the balance oustanding at 31 December the previous year. As interest is calculated in this way, any payment you make will not affect the interest charged until the following year. If you borrow more, interest will be re-calculated on the increased balance for the remainder of the year.

If you miss any fees or payments, they will be added to your loan and interest is charged on the new balance in the following year.

If your interest rate changes during the year, we will re-calculate your new monthly payment and inform you of the new amount.

What does my repayment type mean?

• Interest Only mortgages - Each month you are only paying the interest charged on your outstanding balance. At the end of your mortgage term, you'll be required to pay back the outstanding balance. Please also read the Important Note - Interest Only mortgages below.
• Repayment mortgages - Each month you are paying the interest charged and part of the balance. As long as you make your payments, the balance will be paid off by the end of your mortgage term.
• Part Interest Only and part Repayment mortgages - You have a combination of interest only and repayment sub accounts. Please also read the Important Note - Interest Only mortgages below.

What if I want to make overpayments?

• If you have a mortgage that doesn't have an early repayment charge, you can make a lump sum or regular overpayments of any amount at any time.
• If your mortgage has an early repayment charge period, you can currently make overpayments of up to £499 each month on your mortgage without incurring an early repayment charge, provided this does not result in your mortgage being paid off. However, this facility may be withdrawn by the Society at any time. Please get in touch with us if you wish to make overpayments within the early repayment charge period. Our contact details are on the covering letter of your mortgage statement pack.
• When you make a monthly overpayment of £500 or more, your new monthly payment will be re-calculated immediately on the reduced balance.

What if I want to pay off my mortgage?

• The product summary shows a redemption figure that was only valid at 31 December 2005. If you need an up-to-date redemption quote, please contact us directly advising of your intended redemption date.

Why do my insurance premiums show as a debit when I have paid them?

• The Society pays your insurance provider on your behalf on the insurance due date. This is to ensure that you're covered promptly. The amount shows as a debit on your statement and when you pay us, this will show as a credit on your statement.

What is the insurance premium tax debit?

• The premium that you pay to the Society includes the cost of your monthly cover plus any tax payable. These are shown as seperate amounts on your transaction summary. Added together they equal your total premium.

Important Note - Interest Only mortgages

• If you have an Interest Only mortgage, you must ensure that an appropriate repayment vehicle is in place and check that it is on target to repay the amount of your mortgage at the end of the mortgage term.
• If you're unable to repay your mortgage when the term ends, it could seriously affect your lifestyle. For example, you could find yourself having to sell your house or paying your mortgage after your expected retirement age.
• If you have an endowment policy and you're concerned with the way the policy was sold to you in the first place, we have mailed a leaflet together with your mortgage statements that you may find helpful. It tells you what to do and provides useful contact numbers.
• If you're concerned about your ability to repay your mortgage, get in touch with us by contacting your local branch to make an appointment to see the mortgage adviser, or telephoning our mortgage helpline on the covering letter of your mortgage statement pack.